Are games getting to expensive to ever recoup their costs?

[JRPGfan]

https://x.com/SmashJT/status/2113789829096079392

"My long time contact at Microsoft has just reached out and informed me of a few WILD things.

> Gears of War E-Day Marketing budget was $300,000,000+ on top of the alleged $500,000,000+ development cost.
That is a total of $800,000,000+ for the game entire launch.

> Asha is NOT happy, they stated that this situation is NOT on her, and she is working hard to make sure this kind of shit never happens under her watch.

> Layoffs are already happening right now. With MANY more to come. Future of The Coalition is currently up in the air.

Many other things of note that I will cover tonight but suffice it to say… things are changing massively over at Microsoft Xbox."  - SmashJT


video: https://www.youtube.com/watch?v=IRBJbh3T7ZY





How the hell is that possible?
Like do any studios think its possible to recoup like a $1bn dollars if they spend that much?
Is that what happens next gen with PS6 and XBS2?

Do people believe these numbers? 
That seems like alot.

I remember hearing speculation that the production cost would be over 400m, but here its saying 500m.
Ontop of the crazy costs put into marketing.

Then think of the rumored ~40m revenue it made in its first week or so, from analysts (with 230k sales or something).